Installment Agreements - FAQ
Can I setup an installment payment agreement on-line?
Installment payment agreements can be requested online through the Georgia Tax Center (embed GTC link). You will be able to propose a monthly payment amount, payment draft date, and number of installment payments under the agreement. The Department will send you a confirmation letter if your proposal is accepted. Payment plans are not allowed for taxpayers currently in an active bankruptcy case or if you have a pending offer in compromise application filed with the Department.
Is there a fee to setup an installment payment agreement?
DOR will charge a $50 fee for installment payment agreements where the payments are drafted by electronic funds transfer (EFT) and a $100 fee for agreements where payments are sent to DOR by check.
What is the minimum monthly amount needed to set up an installment payment agreement?
The minimum monthly amount needed to start an installment payment agreement is $25 per month.
Does interest stop accruing on my income tax liability after I enter into an installment payment agreement?
Interest does not stop accruing on your tax liability after you enter into an installment payment agreement. Interest related to a tax debt paid under a payment agreement continues to accrue until the balance is paid in full.
Can I make changes to my installment payment agreement?
Changes to active installment payment agreements are generally permitted. The Department would cancel the existing payment agreement and create a new agreement containing the changes. Please note that you may incur an additional $50 fee for the creation of a new installment payment agreement. For more information, contact the Department at 404- 417-2122 for payment agreements involving income tax debt or your local regional office (need to embed link to Regional Offices here) for payment agreements involving business taxes.
Why did the Department of Revenue take my income tax refund if I had already set up an installment payment agreement?
An active installment payment agreement does not prevent the Department from taking your income tax refund and applying it to your outstanding income tax debt.
What happens if I change banks?
Call the Department at 404-417-2122 or your local regional office (embed link to DOR offices) with your new bank routing and account numbers. The Department will revise your bank information and withdraw your next installment payment from the new account. New banking information must be provided no later than five days before the specific installment payment date impacted by such change.
Can I make additional payments to my tax debt or pay the remaining debt in full before the expiration of my installment payment agreement?
Additional payments to installment payment agreement is permitted. By making extra payments, you will reduce the amount of penalty and interest owed on your tax debt.
Will my installment payment agreement be cancelled if I later fail to file or timely pay my taxes?
Timely filing of your tax returns and payment of any liabilities due are required under the terms of your installment payment agreement. The Department will send you a letter providing an opportunity to make the payment within a limited time period to prevent cancellation of the payment agreement. If you have an active installment payment agreement and owe additional taxes, you should call the Department at 404-417-2122 or your local regional office (embed DOR regional office link) as soon as possible to discuss possible options.
What will happen if I am unable to make my monthly installment payment?
The Department will send a letter notifying you of your failure to make a timely payment under the agreement and provide you an opportunity to make the payment within a limited time period to prevent its cancellation.
Your financial institution may charge overdraft fees if the failure to make a payment is due to insufficient funds in your bank account, and the Department will charge you an additional penalty equal to the greater of $25 or 2% of the insufficient payment.